Accounts Receivable Factoring Services

Business Owners & Managers we offer accessible cash flow solutions without the hassles of getting a loan from a bank. Approvals within Hours!

If your business is unable to obtain bank financing but generates quality accounts receivables, our receivable funding services can be an ideal temporary solution to solve your day-to-day working capital needs. Delivered promptly, professionally and most important confidentially.

Accessing factoring services simply requires a business to be providing goods or services to other creditworthy businesses on terms.

What Is Accounts Receivable Factoring?

Accounts receivable factoring (aka receivable funding) is a commonly used form of funding where a business sells its outstanding receivables to a factoring company to obtain immediate working capital.

accounts receivable factoring

Regardless of your current financial condition, personal credit history, or time in business, you can quickly and easily access your money/funds tied up in unpaid invoices within 24 hours without the usual red tape associated with bank financing. Factoring companies give a growing business tremendous advantages over traditional bank loans, private investors or friends and family.

When you are factoring receivables, you are basically getting cash advances against the face values of your outstanding invoices. The only deduction that comes out of your money is the fee charged by the factoring company. The rest of the money is deposited directly into your bank account, and much of it is deposited within a few hours of approving the invoice.

The great thing about receivable factoring is that there is no need for you to have great credit. The really important decisions in an accounts receivables factoring transaction are based on the credit strength of your client base. No matter how bad things seem to be going for your company, as long as you have outstanding receivables with creditworthy clients, then you have the cash flow you need to do business.

Now let's look at the situations where you would need receivable funding.

A Start-Up With Weak Cash Flow

When an entrepreneur decides to make the big move and start a company, they will usually secure enough funds for the first six months of operations. After that start-up money runs out, there better be cash flow from customers paying their bills or else the new company is in trouble. More often than not, the new company runs the risk of going out of business.

A bank won't help in this situation because of the start-ups inconsequential credit history. Instead of worrying about how you will keep your start-up afloat, you just need to gather up your outstanding receivables and give our factoring company a call.

Companies With Bad Credit

In the business world, bad credit is like a snowball rolling down a snowy mountainside. By the time it reaches the bottom, it is an unstoppable boulder of ice and snow. When your company has bad credit, the banks are usually unwilling to lend you the money you need to keep going. That is when you get involved in receivables funding and let your outstanding receivables pave the way to success.

Growth Is Outpacing Cash Flow

Your company has toiled for years and now you are finally seeing significant financial growth. Things are so great that the orders you are getting are outpacing the money that is coming in. A bank can make this a big problem by refusing to lend you money due to your tenuous cash position. But a receivable factoring company will get you the cash you need and help to keep that cash rolling in, just as long as you have outstanding invoices being generated.

Companies That Are Just Recovering From Financial Issues

If your company has just come out of bankruptcy or has tax liens hanging over like a storm cloud, then it will be impossible to get operating cash from a bank. But a factoring company can take your invoiced sales and help your company to get back on its feet.

A receivable funding company is the kind of financial partner you need when it feels like you have no other options. Remember that to a receivable factoring company, the strength of your organization is in the invoiced sales that you have worked so hard to generate.

Accessing your Money/Funds is Easy with Gateway Commercial Finance.

Step One: Speak with a Decision Maker Immediately

  • Simply call us at 1-855-424-2955 or submit the Receivables Factoring Quote form and you’ll be connected with an Underwriter (no slick salesmen, factoring brokers or un-informed call center representatives) who will listen to your situation and determine if we have a solution that will work for both of us. Our Underwriters are seasoned professionals in the receivable factoring industry and can make immediate and binding decisions from the first phone call.

  • Upon receipt of your completed application, the same Underwriter will review and evaluate your information within 1 hour and either ask clarifying questions or provide you with a comprehensive written factoring proposal for your review. There’s no commitment on your part.

  • Upon receipt of the closing documents, your account can generally be opened within 3 business days with peace of mind knowing you’ll have the ready cash to support your businesses

Step Two: Accessing Receivables Funding is simple and straightforward

  • You will continue to invoice your customers as normal.

  • You determine which customers to set-up and which invoices to receive funding on.

  • When you’re ready to access your funds, simply send us a copy of the invoices along with supporting documents (purchase orders, time-sheets, delivery receipts, etc.). Generally, within 24 hours of receipt of the aforementioned, your funds will be wired directly into your business checking account.

  • Yes, factoring with us is that simple!

Step Three: Customer Payments Reporting

  • In your customer’s normal course of business, they will continue to make checks payable to your business, but will be mailed to a special lockbox. This keeps the relationship confidential.

  • Each day, we sweep the lockbox and post the payments received from your customers.

  • Every Thursday we release your reserve balance on collected invoices, allowing you to fully close out the invoices in your accounting software.

  • You will have 24/7 access to the various reports our software generates allowing you immediate access to invoices sold, invoices collected, your reserve balance and various other management reports.

Take the next Step and Grow Your Business. Talking with a Decision Maker can make all the difference to solving cash flow problems professionally. Take a minute to complete the Factoring Quote Form or give our managing director a call at 1-855-424-2955 for immediate and personalized attention.

Article Author: Marc J. Marin

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